Lego to replace oil in its bricks with pricier renewable plastic

Record ID: 1837979

  • Title: Lego to replace oil in its bricks with pricier renewable plastic
  • Date: 28th August 2024
  • Summary: BILLUND, DENMARK (FILE - APRIL 25, 2024)(REUTERS) VARIOUS OF LEGO DRIVERLESS VEHICLES IN FACTORY VARIOUS OF LEGO BRICK BEING MANUFACTURED VARIOUS OF BRICKS PUT IN CRATES IN DRIVERLESS VEHICLE (SOUNDBITE)(English) LEGO CHIEF SUSTAINABILITY OFFICER, ANNETTE STUBE, SAYING: “In 2015, LEGO made the first commitment around this and since then tested more than 600 different mater
  • Embargoed: 11th September 2024 08:10
  • Keywords: Lego brick fossil fuel plastic recycled plastic sustainable
  • Location: BILLUND, DENMARK
  • City: BILLUND, DENMARK
  • Country: Denmark
  • Topics: Company News Markets,Europe,Economic Events
  • Reuters ID: LVA001956227082024RP1
  • Aspect Ratio: 16:9
  • Story Text:Toymaker Lego said on Wednesday (August 28) it was on track to replace the fossil fuels used in making its signature bricks with more expensive renewable and recycled plastic by 2032, after signing deals with producers to secure long-term supply.
    Lego, which sells billions of plastic bricks annually, has tested over 600 different materials to develop a new material that would completely replace its oil-based brick by 2030, but with limited success.
    Now, Lego is aiming to gradually bring down the oil content in its bricks by paying up to 70% more for certified renewable resin, the raw plastic used to manufacture the bricks, in an attempt to encourage manufacturers to boost production.
    According to CEO Niels Christiansen, this will significantly increase the cost of producing a Lego brick.
    The move comes amid a surplus of cheap virgin plastic, driven by major oil companies' investments in petrochemicals. Plastics are projected to drive new oil demand in the next few decades.
    Lego's suppliers are using bio-waste such as cooking oil, or food industry waste fat, as well as recycled materials to replace virgin fossil fuels in plastic production.
    The market for recycled or renewable plastic is still in its infancy, partly because most available feedstock is used for subsidised biodiesel, which is mixed into transportation fuels.
    According to Neste, the world's largest producer of renewable feedstocks, fossil-based plastic is about half or a third of the price of sustainable options.
    Around 90% of all plastic is made from virgin fossil fuels, according to lobby group PlasticsEurope.
    (Production: Jacob Gronholt-Pedersen, Tom Little, Ilze Filks)
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